Teraplast 3Q 2010 results

3Q sales were virtually flat on our estimates at RON 67.2 mn, 8.3% higher yoy. At the same time, EBIT came 30% lower than our estimates and 45% lower yoy at RON 3.5 mn. Helped by financial gains of RON 0.7 mn (vs. our estimates of RON 1 mn), the bottom line came in slightly lower at RON 4.1 mn, down 18% yoy. On a consolidated basis, 1-3Q 10 sales advanced by 15.6% yoy to RON 207.5 mn, while the net profit was 6% lower yoy at RON 12.7 mn.

On a consolidated basis, the results reveal a better than expected picture, especially in terms of profitability. Thus, we view the news as positive. We will provide more details in our First Impression later today.